How To Build a Winning Cash Flow Business

Cash Flow Notes

What is a "Cash Flow Note"?

The term "cash flow notes " is industry jargon used to describe the income stream or periodic flow of cash that is received on a pre-determined payment schedule from certain types of financial assets. That might sound like a mouthful but it's really quite simple.

Just think of a cash flow note as a formalized 'I-O-U'; a written promise by someone to pay someone else a certain amount of money at a specific point in time. The defining characteristic is that one party owes another party money at some future point and they have a formal written agreement that establishes the debt obligation & the terms of repayment.

Examples of Cash Flow Notes

To help you get a better idea of what we're talking about, here are a few examples of some typical "cash flow notes" that just about everyone is familiar with: your monthly mortgage or rent payment; your monthly car payment or lease payment; buy-here-pay-here car sales; any sort of seller-financed or 'seller carryback' promissory notes on residential or commercial real estate or other property; your health club membership; shopping club memberships; any other club or group memberships where you pay a monthly or annual dues or membership fee; timeshares, any "rent to own" payments for furniture, real estate, property or other purchases; monthly credit card payments and consumer contracts paid over time for services such as cosmetic surgery, dental work, orthodontics, etc., and any other loans that you make monthly or periodic payments on.

Another type of cash flow notes are annuity-based payment streams like lottery winnings and casino jackpots that are paid out over long periods of time and structured settlements that result from personal injury and wrongful death lawsuits. There are also workers compensation payments, disability payments, pension payments, retirement payments, structured insurance payments ... well, you get the picture.

For businesses, cash flow notes are often referred to as "accounts receivable" and include business-to-business invoices for the sale of goods and services, purchase orders, credit card sales receipts, asset based loans and all payments received from the lease, rental or sale of real estate, businesses, property, equipment and vehicles, just to mention a few.

Another example that most people are familiar with nowadays are home mortgages. These can be new loans originated by a mortgage brokerage that are then bundled together and sold to investors or they can be established mortgages that are either performing (paying), non-performing (non-paying), or REO (Real Estate Owned - properties that have been foreclosed and are now owned by a bank).

In practically all of these examples, the owners or recipients of these various types of payments have the legal option to sell their right to receive some or all of their future payments in exchange for an immediate lump sum of cash. Selling these types of future payments or future assets is an extremely popular method (especially now with the depressed economy) for the owners of these types of assets to raise cash quickly in order to free up cash or to maintain or improve their cash flow.

How Do You Make Money With Cash Flow Notes?

To understand why cash flow notes can be such a profitable work at home business for you to get involved with, you simply need to understand that this method of raising cash is 1.) exceptionally popular and 2.) heavily favored by companies and most individuals over traditional bank loans, bank financing and business lines of credit because of one simple, very attractive reason: IT DOES NOT CREATE ADDITIONAL DEBT.

To the contrary, selling cash flow notes is a fast, simple, cost-effective way to convert existing assets (the future income) into a different and far more favored type of asset (spendable cash). This is especially important to understand in the current economy because most bank financing has either evaporated completely or is exceptionally difficult to qualify for. For this reason, most companies and individuals right now have no other alternative for raising additional capital. In fact, conservative estimates place the overall business conducted by these types of transactions at between $350 billion and $1 trillion per year and increasing. Why is it increasing? Because of the turbulent economy.

What The Cash Flow Note Business Could Mean For You

There is practically limitless opportunity available right now because literally hundreds of millions of people and business around the world are struugling financially. This is because most of them are unable to obtain the financing they need for business loans, business lines of credit, home mortgages, working capital, etc., through any conventional banking sources. Banks have all but stopped lending money and issuing credit to individuals and businesses alike, credit lines have been cut off, operating capitals lines have disappeared and mortgages and personal loans are nearly impossible to get.

If you are serious, mature, motivated, teachable, ready for a change and are dead serious about being successful in your own home based business, you need to giving the cash flow business a very serious look. You can start small, work it part time, you don't need any special licensing or college degrees to get started and you don't have to give up your day job either. Startup cost is less than $40, you can take full advantage of the incredible power of the internet and you can continue learning WHILE you're earning. For people who are interested in starting a successful home based business that thrives in a bad economy, there has never been a better or more lucrative time to get involved and start your own winning cash flow business.

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